I hope you can help me! We owned a home in Oregon that was never our primary residence. We placed it in service in 2001 and stopped renting it after we moved out of state in 2014, at which time we began using it for a second home. We sold it last year, after we moved back to Oregon. We received a 1099S to report the sale. I know we will need to recapture the depreciation and pay taxes on the capital gains. I trying to figure out how to report the income on the 1099S and which IRS Form would I use? I have all the calculations for reporting the income, but I am not sure which place to enter it? When I researched it online I saw two options one for Form 4787 and one for Form 8949? I have tried to enter it under "Business Items" and then "Business Sale of Property", after I answer the questions and fill in the "Gross Sale Proceeds" into the box it pops me out of the interview and back to the "Income Summary Screen", so I am unable to continue.
